Apparently there are some misconceptions going around about the funding
for the capital projects as announced last week. In the press conference,
the statement was made that of the $135 million total funding for these
projects "over 90% will come from private gifts." This has led to the inference
by some that the other 10% would come from general university funds which
might be available for other priority uses. This is not the case.

Specifically, the only "general funds" in all of these projects derive
from two sets of legislatively appropriated "G" bonds (bonds repaid by
the state from general funds, not from funds directly appropriated to the
Oregon University System). The first of these is approximately $3.7 million
appropriated for general university classroom renovation and expansion
as a part of the Gilbert Hall project. These funds, together with other
private funds, will result in the replacement or renovation of all of the
classrooms in that complex, and the addition of several classrooms for
general university use. The second is approximately $6 million appropriated
for the renovation and expansion of the Museum of Art. These bonds will
be matched by an equal amount in private donations. The other funds in
the project that are not from private gifts will be approximately $7 million
dollars in the financial plan for the Autzen Stadium expansion project
which will come from the increased revenues over time, generated by the
increase in seating and the rental of the sky boxes. These funds will be
borrowed, but will be repaid from the stadium-related revenues, not from
general university funds.

Also, as was stated at the press conference for the Autzen project,
the increased revenues from the expanded stadium will permit the University
to recover the current subsidy of non-revenue sports and Title IX compliance
costs, amounting to about $2.2 million, over a 5 to 7 year period, beginning
with the completion of the stadium. This recovery is specifically built
into the financial plan for the Autzen project. The $2.2 million will be
unrestricted funds in the university's budget, and is the equivalent of
the payout from a $55 million endowment.

This message is obviously not an attempt to answer all questions which
might be raised about these projects, but to try to be sure that our discussions
are informed by facts.